Shares of RBLU Now Oversold

In trading on Tuesday, shares of the RBLU ETF (Symbol: RBLU) entered into oversold territory, changing hands as low as $6.34 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of RBLU, the RSI reading has hit 28.3 — by comparison, the RSI reading for the S&P 500 is currently 71.7. A bullish investor could look at RBLU's 28.3 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), RBLU's low point in its 52 week range is $5.59 per share, with $123.05 as the 52 week high point — that compares with a last trade of $6.51. RBLU shares are currently trading off about 14.6% on the day.

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